Three Options to Consider

Green Mountain Coffee Roasters (GMCR) is sure to be an entertaining name post earnings. I don't quite see the move options are currently pricing, but I am jumping into this name. Originally, I was going to sit this one out but I see a few attractive opportunities here. On the put side, I am shorting two November $24-$21 put spreads and using the credit to buy one December $25-$21 put spreads for no net cost. On the long side, I am buying the November $30 call and December $34 call while shorting 2x November $33 calls for a net cost around $1.50. I have $33 as the upside price target for GMCR and $24 as the downside target. There is a huge short interest hovering a bit below 40%, so a gap fill during December isn't out of the question, but $41 feels like a stretch. If I were playing for that move, then December $34-$41 call spreads for a buck would be my Powerballesque lottery ticket.

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